SaaS (Software as a Service) businesses are growing in popularity because numbers are growing tremendously high. According to the research report of Verified Market Research, the total valuation of the global SaaS business market is around 151.31 billion US dollars, which is likely to reach the mark of 896.20 billion US dollars by 2023 (Source). This market is segmented into different industries. One of the emerging markets in the SaaS models is the call center industry and one of the overlooked aspects in this segment is call center with billing.
Whenever you think about running a SaaS business using one of the best call center Billing solutions, you are likely to think about everything as a vital component except for the call center billing solution. A majority of businesses focus on multi tenancy, omnichannel, third party API integration, and several other aspects followed by marketing strategies, customer retention plans, and more. Billing, often overlooked, is the key to achieving your ultimate goal – getting paid, sustaining your business, and turning a profit.
In this blog post, we will explore more details about the SaaS business model in the call center industry and the role of billing in this industry.
So, without any further ado, let’s get into the detail of each of these points:
1. What is a SaaS Model in the Call Center Billing Industry?
The call center industry is thriving, set to grow at a 10.80% CAGR from 2023 to 2033, already a billion-dollar market. This number represents businesses that run as call centers and handle offshore projects. Other than these call centers, there are emerging startup call centers, in-house departments, etc. that handle inbound, outbound, or blended call centers.
To manage customer care, cold calling, sales, and several other similar campaigns, a business needs a reliable contact center software solution. Each of these businesses is less likely to be able to afford a feature-rich solution for call centers. Thus, they opt for the SaaS model.
A contact center solution provider can run the SaaS model using one of the best multi tenant call center solutions. A multi tenant solution enables the provider to create instances, which are also known as tenants, for each of its customers. Each tenant can act as an independent call center solution. The provider has the ability to manage these tenants, offering access to the software users based on their roles or accounts, whether they are a call center or a company operating an in-house customer care center. In this model, known as “software as a service,” the provider charges customers for using the software, while also taking care of all technical aspects and receiving payment according to a predefined billing cycle. hand, the tenant will pay for the software usage as per the defined cost.
2. What are the Billing Models in the SaaS Call Center Business?
In the SaaS business, billing is more complicated than in a simple call center business because it includes different factors. In this industry, billing can never be straightforward because there are dynamic aspects and variable values assigned to the billing models. Furthermore, the billing process often involves handling a substantial number of entries. Handling call center billing manually becomes quite complicated and challenging due to all these factors.
To make a move to understand the complexities related to call center billing, let’s first understand two majorly used billing models in the SaaS business in this industry.
Subscription Based Billing
This is a common and easy to implement billing model in this industry. The call center software provider will have different subscription plans, which are also known as rate cards. Each of these plans will have different feature access to the software along with some predefined functionalities and benefits. The cost will be fixed for each of the subscription models.
Usage Based Billing
This model charges customers based on system usage and resources provided by the provider, aligning with its dynamic nature. The usage can be of the software, in general. Other than that, some software as a service providers also offer additional offerings, which are chargeable such as paid support, third party integrations, omnichannel communication, etc.
The hybrid billing in the call center with billing is a blend of both subscription and usage based billing models. According to this model, the customers have to pay a certain fee as part of the subscription fee and then they need to pay variable costs based on the usage of the software. In the call center industry, this model is heavily followed by the contact center solution provider. The reason is that billing is dynamic in this industry. From the number of agent seats to supported concurrent calls per minute, total call minutes, etc. can vary depending on the season, peak time, etc.
Along with these three models, prepaid billing and postpaid billing are also part of this industry. A majority of call center billing solutions support all three of these billing models along with prepaid and postpaid billing and payment.
3. What is the Role of Call Center Billing in this Industry?
Even if billing is one of the most complicated and vital business aspects, it is often neglected by SaaS business owners. They put more focus on call center dialer solutions, marketing, customer retention, and other aspects. Of course, these aspects are vital, but billing is even more crucial for a business for multiple reasons.
In this industry, your billing system has to be accurate, efficient, and timely. There are several advantages of these businesses, which make the role of billing essential in the call center industry.
Steady Cash Flow Cycle
The sole purpose of running any business is earning revenue and increasing returns over investment (ROI). This is possible only if you have a clear billing model and system in place. Furthermore, sending bills on time is crucial for receiving timely payments and maintaining a smooth cash flow cycle.
As billing and invoicing are quite complicated jobs in the call center industry, along with the best contact center software, it is necessary to get the best call center billing software, too. Automatically track customer usage, subscriptions, and more for a thriving, profitable business.
The lack of this system in place will lead to delayed payments. However, expenses will be steady. This directly impacts the profit model of the business, which often becomes the major reason behind the failure of the call center business with the SaaS model.
Transparency in Billing
Billing in the call center industry is a bit complicated not only to calculate but also to understand. This makes it more crucial and complicated. The final amount sent in the invoice often raises doubts and concerns in the minds of customers.. This would also result in a chain of support requests via email or phone to seek clarity on bills sent to clients. This delays payments and directly affects the cash flow of the business.
If you use one of the best call center billing solutions, then these concerns can be left behind by giving a detailed invoice. The software will be able to map the subscription model along with adding details of the system usage. The invoice covers agent seats, call minutes, call charges with the least cost routing, and more calculations. The invoice can be as transparent as a call center software provider wants it to be.
It simplifies SaaS operations, streamlining billing inquiries and saving time on customer support, ensuring clarity for clients in the call center industry.
Increased Credibility as a Provider
Customers always prefer to deal with providers that are transparent and accurate. Moreover, when you operate in the B2B space, things are more formal and professional. Companies like providers that are straightforward and provide the required details and support. This is possible only if you have the right software and team in place. By using the best call center billing software, you can give more detailed invoices and secure payment processing options. Moreover, the system is automated so that you can send bills on time. Your clients will prefer this, and it will certainly enhance your credibility and reliability as a provider.
Better Brand Building
Money is often the cause of distrust and you overpower this challenge by implementing an automated billing system. Increased credibility as a provider will increase the trustworthiness of your brand as well and this will directly benefit your business and revenue generation. You can get better business opportunities and competitive gains.
Making the Right Business Strategies
Clarity in billing will also let you assess more sales and revenue making opportunities. You will be able to know where you are making more money and where you are losing it. These details can be very helpful in defining future business strategies.
4. How to Get Seamless Billing in the Call Center SaaS Model?
It is always recommended to get a call center solution with an integrated billing module. This will reduce your struggle related to call center billing integration, compatibility related challenges, etc. Thus, if you are looking for software, you must get one with an integrated billing system. However, if you do not have access to that kind of solution, you can also get the call center billing solution and integrate it. This system often provides automation and several other features to make call center billing easier for SaaS businesses.
In a nutshell, the role of billing in the SaaS business of the call center industry is very critical. In fact, it is one of the definitive success factors of the business, which defines how your business will take a turn in the competitive space. A majority of SaaS business owners in the call center industry put all their focus on getting the right solution for call centers. Along with this software, implementing the right billing system and secure payment model is equally important. It will not only streamline the cash flow, but it will also help in enhancing several other aspects of the business to gain more credibility and enjoy other branding benefits.
We have been helping businesses with one of the most renowned multi tenant call center solutions, which has an integrated billing system. We also provide call center billing integration to the users of iCallify to use its powerful features, so the automated system can back billing. SaaS business owners can keep all their concentration on other aspects of the business.
To help you understand the worth of our software, we provide a free trial as well as a lifetime free edition of the software. You can opt for this edition of the latest version of iCallify software. This will give access to the host of the features available in this software along with a call center with billing. To book your free trial or edition or to ask any questions that you may have about our software, please contact us and our team will connect with you for a personalized discussion.